Google to challenge Apple's music empire

Filed in archive strategy on June 25, 2010

The looming war between Google and Apple continues to build with The Wall Street Journal reporting that Google plans to offer a music download service to rival Apple's iTunes. Initially, the service will be tied to its search engine later this year, followed by an online subscription service in 2011.

Why is Google getting into music? Simply because the company plans to link it to telephones running its Android operating system which will give the company a bigger presence in telephony, certainly one to rival Apple's iPhone. Telephones are the big growth market around the world and Google wants a slice of that.

This will enable Google to position itself as a cloud-based subscription service, allowing users to stream music directly from the internet to their mobile phone. It's Google's challenge to the Apple's Apps store.

If Google goes ahead with this, it will be welcomed by music labels concerned about Apple's dominant position among U.S. music retailers. Already the US Justice Department is conducting a probe into Apple's grip on the music market.

It will be fascinating to see how Apple responds to this threat.